1. Field of the Invention
The present invention relates generally to the field of multilevel marketing and more particularly to a combination of direct marketing and network marketing that eliminates a need for lead generation and implements an innovative power matrix commission structure to grow and maintain successful network marketing businesses.
2. Discussion of Background Information
Multi level marketing (MLM) businesses employ well-known techniques for promoting sales and compensating independent business owners (IBOs). A typical MLM requires an IBO to generate leads by cold calling potential customers, sending mailings, meeting face-to-face with potential customers, and other like methods. With leads in place, an IBO promotes sales of a service or good with the intent of making a sale and hopefully convincing a lead to sign on as another IBO or as a distributor within a discreet network. As a primary IBO builds a personalized network by recruiting new members and IBOs, the number of commissions increase based on the additional sales falling within that network under that primary IBO.
This business approach is difficult and often tedious. Most IBOs are uncomfortable with targeting family and friends, let alone acquaintances, to promote sales. Generating leads is a tough task and time consuming, leading to frustration and often painfully slow business growth. Typically, within a short time, and usually in just under 1 year, an IBO either loses stamina or lacks monetary resources to continue supporting inventory purchases and other business overhead. Retaining a network of IBOs also becomes an issue. When IBOs in a network drop out and elect to discontinue their business, other members of that network generally follow suit out of discouragement. Primary IBOs lose all of their hard work invested in generating those connections, and with the loss of network members goes lost sources of income.
Even when subsidiary IBOs remain in a network, payouts to a primary IBO are often insufficient to maintain a profitable business. Promised pay out percentages seemingly based on profits often result in payout percentages on only a portion of profits. Payouts are generally an arbitrarily assigned number. Additionally, most MLM schemes pay out more initially and less as a network grows. This structure lacks great incentive to propagate business networks and that contributes to business collapse.
For the foregoing reasons, a need exists for a network marketing structure that provides reliable leads and that encourages and rewards IBOs who grow their business networks.